Consultation on the Use of System Tariff Structure Reform Project

Overview

The Utility Regulator has initiated a project to review and reform the structure of electricity network use of system (UoS) charges in Northern Ireland. The structure of network tariffs plays a critical role in determining how network costs are recovered and how all electricity consumers interact with the electricity system.

Northern Ireland’s electricity system is undergoing significant change, including the potential for increased electrification of transport and heat, and growth in distributed generation. This includes recent policy reforms to connection charging arrangements, the planned roll-out of smart meters, increased electrification and uptake of low-carbon technologies.

The current tariff structures were developed in a different energy context and may no longer fully reflect the way in which users make use of the network or the costs that they impose.

The planned roll-out of smart meters is also a key enabler of tariff reform. Smart metering will provide access to more granular consumption data and enable the implementation of a wider range of tariff structures, including time-of-use and dynamic tariffs.

These changes present several challenges. In particular, how cost-reflective the current tariffs will continue to be, overtime. Ensuring that network costs are allocated fairly across users will therefore be a key consideration in the review.

Where evidence supports reform, changes to tariff structures could provide an opportunity to ensure that charges are more cost-reflective, support efficient use of the electricity network and facilitate the transition to a low-carbon energy system.

The consultation sets out our proposed programme of work. We have posed specific questions to help focus on each aspect of the consultation; however, consumers and stakeholders are welcome to express views on any particular aspect of the consultation that they wish to.

Further information on the consultation, including access to consultation documents, is available on our website.